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Provides answer to refunding state Transportation Trust Fund

BY TOM HESTER SR.

NEWJERSEYNEWSROOM.COM

Gov. Chris Christie Thursday unveiled what he describes as his $8 billion plan to fund mass transit and highway projects for the next five years.

The plan consists of cash contributions from the state's general fund and the New Jersey Turnpike Authority, bonding and $1.8 billion in projects Christie wants the Port Authority of New York and New Jersey (PANYNJ) to handle in conjunction with the state Department of Transportation.

As a result, the state will be able to provide $1.6 billion each year for five years for what the governor said are much-needed transportation projects throughout New Jersey, including $672 million for NJ Transit projects and $200 million per year for local government projects.

The plan is Christie's answer to the need to refund the state Transportation Trust Fund.

The governor has asked the PANYNJ to undertake these projects in the port district that link the Holland Tunnel and the port:

• Pulaski Skyway in Essex and Hudson counties;
• Wittpenn Bridge The Route 7 bridge is a major connector in Kearny between Routes 139 and 1&9 Truck to the east, and Turnpike Interchange 15W to the west;
• Route 139: Route 139 links the Holland Tunnel, Routes 1&9Truck, the I-78 Turnpike extension, and local roadways in Jersey City and Hoboken, and;
• Portway New Road: The proposed roadway will connect St. Paul's Avenue along the CSX railroad crossing over New County Road and terminating at Secaucus Road in Jersey City.

"Today, we are continuing to put New Jersey on the path towards fiscal health and proposing a sensible and responsible plan that prioritizes vital transportation projects, while limiting the already-heavy debt burden carried by the taxpayers of our state," Christie said. "After years of mismanagement and the failure to soundly plan for New Jersey's transportation future, we were left with an unacceptable situation — a system teetering on the edge of failure, without the ability to fund a basic, core function of government. Today, we begin to end that practice by putting forward a Transportation Capital Plan that meets our infrastructure needs and responsibly manages the debt incurred by taxpayers.

"Most importantly, ensuring these critical transportation projects move forward will create thousands of Jersey jobs," Christie said. "By responsibly investing in projects over the next five years we're putting New Jerseyans to work now and in the future.

"As we have learned with so many other issues in New Jersey, our most pressing challenges simply will not fix themselves," Christie added. "Just as we will not simply drift by chance into balanced budgets or stumble into a less costly, more efficient government, transportation investment in New Jersey requires discipline and careful planning to meet our needs in a realistic and fiscally responsible manner. The plan outlined today meets these challenges and ensures that the state will succeed where prior funding schemes have failed."

Assembly Speaker Sheila Y. Oliver (D-Oliver) quickly criticized Christie's plan, saying it includes borrowing more than $4 billion to fund half of the $8 billion in spending.

"The governor has slapped together a haphazard plan to fund the state's transportation needs that relies on many of the same gimmicks he has long derided others for," Oliver said. "With more than half of the $8 billion dollar plan funded by irresponsible borrowing, one would have to question the suspect timing of this announcement. This is not what the governor had promised to do. Instead of putting forth an innovative proposal to address our critical transportation needs, the residents of this state will simply be saddled with more debt.

"Moreover, nearly a quarter of the funding plan relies on yet obtained approval from the Port Authority of New York and New Jersey," Oliver said. "In the days and weeks ahead, the Assembly will certainly pore through this proposal to see how we can improve upon this plan."

Assembly Republican Leader Alex DeCroce (R-Morris) said, "Governor Christie's five-year transportation program is a fiscally sound plan that will make the much-needed infrastructure improvements to New Jersey's highways and bridges. The fact that taxpayers will not have to shoulder the burden in order to fund the $8 billion program is something many skeptics didn't think could be done, but Governor Christie has proven them wrong. New Jersey's residents and economy rely heavily on a safe transportation network. Maintaining our roads and transit system is of paramount importance to the people who live and work here. The governor's plan is a win-win and should be embraced for achieving the dual goal of investing in a critical need without increasing taxes or borrowing endlessly."

Senate President Stephen M. Sweeney (D-Gloucester/Cumberland/Salem) said of the plan, "The governor campaigned against greater debt and spent a good part of his first year telling us how we can no longer saddle residents with more debt. I wonder when his actions will catch up to his rhetoric. I thought debt was a dirty word to Republicans. Unless, as with other things, GOP fashions change as the governor says they will.

"Billions of dollars in more borrowing is just pushing the real costs onto future taxpayers," Sweeney said. "Redirecting ARC tunnel money is just another in a long string of one-shot gimmicks. Throwing the Pulaski Skyway onto the shoulders of the Port Authority is just asking someone else to take on your problems. There is nothing in the plan that will provide long-term fiscal stability to the TTF."

Assemblyman John Wisniewski (D-Middlesex), chairman of the lower house's Transportation, Public Works and Independent Authorities Committee, said of the plan, "When Governor Christie canceled the second trans-Hudson rail tunnel — the ARC tunnel project — many of us in New Jersey, myself included, feared the worst. We feared that he would use the money from the canceled rail program to help keep the TTF afloat for a few more years "The plan the governor proposed today, however, goes even beyond our worst fears. The governor doesn't just kick the can down the road, he punts it there.

"The governor's plan to keep the TTF afloat calls for issuing billions of dollars in new bonded debt, all without voter approval," Wisniewski said. "The governor's plan to keep the TTF afloat calls for using Turnpike Authority money and increasing tolls on the Turnpike. The toll increase was supposed to go to pay for the ARC tunnel, which was supposed to take cars off our roadways. Now, motorists on the Parkway and Turnpike will instead be forced to pay to repair roads they never use

"The governor's plan to keep the TTF afloat calls for using Port Authority money that had been earmarked for the ARC project, which relies on the cooperation of New York's governor and will likely result in higher tolls at Port Authority bridges, tunnels and transit," Wisniewski continued. "All this from the man who, just over a year ago, called borrowing money to keep the TTF solvent ‘unconscionable.' The ARC tunnel project was supposed to be a lifeline for the region's rail network. Now, Governor. Christie is using the project's funding as a lifeline to keep his national conservative credentials intact. If this is the governor's idea of turning Trenton upside down, color me underwhelmed."

Christie said his plan is a step toward end the state government's long reliance on debt to finance transportation projects. He said the plan is consistent with his commitment to putting New Jersey on strong fiscal footing and is why it is centered on responsible funding practices and prudent debt management. He said his plan decreases borrowing while increasing "pay as you go" cash funding of transportation projects in each of the next five years. The plan does not call for any new or increased taxes.

The former plan, which is about to expire, began in fiscal year 2006-2007 and provided $8 billion ($1.6 billion per year) for transportation projects, including $200 million per year for local government projects. The plan relied on a stable $895 million annual general fund appropriation that became almost entirely devoted to making debt payments, instead of funding current transportation needs.

Ultimately, the only way to continue paying for projects was for the state to incur debt. As a result, the former plan allowed the fund to run dry.